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New Digital Tools Empower Changing Australian Enterprises

Pandemic effects and a growing focus on sustainability help to drive digital transformation using emerging technologies, ISG Provider Lens report says

Enterprises in Australia have significantly increased their use of digital tools and transformation services in recent years as information technology has continuously advanced in several areas, according to a new research report published by Information Services Group, a leading global technology research and advisory firm.

The 2022 ISG Provider Lens Digital Business Enablement and ESG Services report for Australia finds many organizations have used IT to enhance their agility, improve customer experience and streamline business processes in response to the disruptions caused by the COVID-19 pandemic. A growing number of companies have also begun using digital tools and services to achieve environmental, social and governance (ESG) objectives, especially net-zero carbon emissions goals.

“Digital transformation has become essential for success in Australian industries, which have a high degree of IT maturity,” said Michael Gale, partner at ISG. “Demand for products and services to support modernization continues to increase.”

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Supply chain management (SCM), long recognized as an important function in Australian enterprises, has been at the center of many recent digital transformation initiatives, the report says. Most companies already have mature SCM processes and have been modernizing these to create hybrid physical and digital supply chains. With the help of service providers, they have implemented real-time, end-to-end visibility for timely delivery of both physical and digital products.

Meeting rising customer experience (CX) expectations has also been a major focus for Australian enterprises across most industries, ISG says. The country’s well-developed provider ecosystem has helped many companies apply advanced CX techniques to understand consumer behavior and capture customers’ attention.

Managing the physical and transitional risks of climate change is an increasingly important reason for digital transformation by companies in Australia, the report says. Recent political changes have elevated climate change on the country’s policy agenda, and highly visible Australian companies have also helped to make decarbonization a high priority. Companies are collecting reliable, centralized data and deploying new analytical tools powered by AI and machine learning to improve efficiency and make more accurate predictions.

“Australian companies spent the last decade learning to understand sustainability and its potential in business and beyond,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Now the focus is shifting to evolving business models to reach sustainable development goals.”

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The report also explores other digital business trends in Australia, including the cultural challenges created by digital transformation and the use of digital reality systems to create immersive experiences for employees and customers.

The 2022 ISG Provider Lens™ Digital Business Enablement and ESG Services report for Australia evaluates the capabilities of 44 providers across five quadrants: Business Consulting Services, Customer Experience Services, Supply Chain Transformation Services, Sustainability and ESG Services and Digital Reality Services.

The report names Accenture and HCLTech as Leaders in all five quadrants. It names Deloitte Digital, Infosys and Wipro as Leaders in four quadrants each and IBM and Tech Mahindra as Leaders in three quadrants each. Capgemini, DXC Technology, EY and Telstra Purple are named as Leaders in two quadrants each. Atos, Datacom, Energetics, Hexaware, McKinsey and TCS are named as Leaders in one quadrant each.

In addition, Espire Infolabs is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition  in two quadrants. TCS and Tech Mahindra are named as Rising Stars in one quadrant each.

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